Jim Cramer says these outdoor games are a buy as economy reopens
CNBC’s Jim Cramer said on Monday that investors should look at stocks exposed to outdoor activities such as camping and boating as the economy reopens.
“As the pandemic ends, I think the great outdoors theme has more legs than you might think,” the “Crazy money“It could be a huge summer, even bigger than last summer, which means any of these stocks could have legs, especially since a lot of the big institutional investors have shied away from them.”
Here are the takeaways from Cramer’s recommendations:
Brunswick: “While the title hit a new all-time high today, it just doesn’t reflect the incredible numbers we saw last week,” Cramer said. “This high-quality outdoor stockpile sells for less than 13 times next year. I find it ridiculously cheap.”
LCI Industries: “Lippert sells … for just 15x next year’s earnings estimate, a solid 2% return, so if the stock sells tomorrow you might want to dig deeper into the quarter and use that weakness as an opportunity purchase if you like what you see., ”he said.
Thor Industries and Winnebago Industries: “They carried so much cargo last spring and summer that supplies are incredibly tight and that allows them to make a fortune in this environment,” he said. “Thor is [selling] at 14 times the profit, Winnebago at 11 times the profit. Thor gets that higher multiple because he’s the best of his breed, but they both work here. “
Camping world: “I think this one is a great story of regional to national growth, and only sells 9 times the profits,” said the host. “If you can get it at a discount after the quarter, I think you will jump.”
Airbnb: “It’s a fabulous way to play out the next travel boom, and that includes people renting homes in remote areas so they can enjoy nature,” Cramer said. “I am awaiting the imminent expiration of the insider selling block, something that could wipe out the action and perhaps provide you with a tremendous buying opportunity.”